“Airbus A350 production hike is unrelated to Boeing issues”- CFO
Airbus is increasing production of its A350 aircraft in response to growing consumer demand, rather than as a result of the challenges faced by its U.S. competitor, Boeing, according to the company’s Chief Financial Officer.
Image Source: cnbc
The Toulouse-based plane maker recently announced plans to boost the production rate of its long-range A350 planes to 12 units per month by 2028, citing strong commercial momentum for the decision.
In an interview with CNBC, Airbus CFO Thomas Toepfer emphasized that the production increase reflects the significant order intake for the A350, with nearly half of the 170 gross commercial aircraft orders in the quarter comprising variants of this model. He expressed confidence that this momentum will persist in the future.
Globally, aviation firms are grappling with supply chain and production challenges as they struggle to meet the high demand from airlines for new aircraft. Airbus experienced a notable surge in gross commercial aircraft orders in 2023, reaching 2,319 compared to 1,078 in the previous year.
Meanwhile, Boeing has reduced production of its 737 Max model, following its involvement in fatal crashes and other safety incidents. Toepfer acknowledged ongoing supply chain issues, noting their broad-based impact across materials, which complicates Airbus’ production efforts.
He reiterated that Boeing’s challenges are not beneficial for the aviation industry overall, including Airbus, as they exert additional pressure on the supply chain and individual suppliers.
To address supply chain concerns, Airbus is engaging in constructive discussions with manufacturer Spirit, which is in takeover talks with Boeing amid financial difficulties. Airbus is considering the possibility of taking over work packages currently produced by Spirit to ensure a secure supply chain for its operations.
Despite these challenges, Airbus’ quarterly results fell short of analysts’ expectations, with a 25% year-on-year decline in operating profit in the first quarter. This contrasts with Boeing’s quarterly loss of $355 million reported earlier.
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